Wednesday, February 4, 2009

The Elephant in the Room

Update 2 (08.12.09): S&P announces it "may offer a new type of rating on U.S. home-loan bonds reflecting its expectations for how much might be recovered after the securities default." The “stressed recovery ratings” would apply to prime, Alt-A and subprime mortgage bonds with credit ratings of BB+ or below that had originally been granted AAA ratings.